It is usually asserted that political instability significantly lowers private investment, as well as economic growth, since it has adverse influence on property rights, and by that on investment and growth (i.e, Robert Barro, 1991; Ross Levine & David Renelt, 1992; Paolo Mauro, 1994; Edgardo Zablotsky, 1994). Political instability may lead entrepreneurs to wait until the uncertainty is resolved, before undertaking irreversible investment projects, it also may lead to capital flight; by the same token, multinational companies may be less likely to locate their subsidiaries in countries that face the possibility of coups, revolutions, terrorism, or expropriation.